6th October (WNN) — US stocks closed in the green on Wednesday, reversing earlier gains amid optimism that Congress would reach a debt ceiling extension deal.
The Dow Jones Industrial Average gained 102.32 points, or 0.3%, after falling 459 points earlier in the session, while the S&P 500 rose 0.41% after falling 1.27% to its session low, and the Nasdaq Composite climbed 0.47%, hitting a session low. was above level. of 1.2%.
Markets reversed earlier losses after Senate Republican leader Mitch McConnell, R-Ky., said he would support an extension of the debt limit in December.
Investors bought into tech stocks, with Microsoft stock up 1.51%, Amazon stock up 1.27%, Nvidia up 1.22% and Google’s parent company, Alphabet, up 1.13%.
On the other hand, American Airlines fell 4.33% and JetBlue 2.67% on Wednesday as the economic reopening plunged.
Before the debt cap news, stocks were down as investors weighed in on inflation concerns.
“It’s no surprise that the term ‘stagflation’ is coming back in everyone’s vernacular,” Simeon Hyman, head of advisory at ProShares, told Yahoo Finance. “Energy prices are rising, these cargo ships are parked on both sides of the coast, there is a shortage of everything … and those prices are going up. But the main news is good.”
The 10-year Treasury yield was flat on Wednesday at about 1.52% and oil prices hit their highest price since 2014 this week as West Texas Intermediate crude rose above nearly $80 a barrel.
October has been a volatile month of trading with a gain of 483 points on Friday, a fall of 324 points on Monday and then a gain of 312 points on Tuesday.
“Well, October is living up to its reputation as the most volatile month of the year. We expect the October roller-coaster market to last a bit longer,” said Ryan Detrick of LPL Financial.